If the Rate of Inflation in a Given Time Period

question 93

Multiple Choice

If the rate of inflation in a given time period turns out to be higher than lenders and borrowers anticipated, then the effect will be:

• A) a redistribution of wealth from borrowers to lenders.
• B) a net gain in purchasing power for lenders relative to borrowers.
• C) no change in the distribution of wealth between lenders and borrowers.
• D) that the borrow will be a winner.

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Definitions:

Improve

To make something better or more effective through adjustments or modifications.

Employees

Individuals who are hired by an organization to perform specific duties and tasks in exchange for compensation.

Primacy Effect

The tendency to remember information at the beginning of a list better than information that comes later.

Brief Bit

A small or succinct piece of information or news.